Relationships a key focus at RBS

Tim Crommelin and Anthony Kirk of RBS Morgans have maintained a conservative Brisbane-based operation with instrumental involvement in QR National and a string of deals from property trust rights issues to capital raisings for emerging miners. They say the key to the consistent deal flow has not just been the mining boom but the maintenance of healthy relationships – something they say distinguishes them from the bigger Sydney and Melbourne capital markets.

“Perhaps the relationship is more of a focus up here," Kirk says. “We come from a small market and so we take more care in identifying the right businesses and getting the repeat business."

Although Brisbane is benefiting from a mining boom, Crommelin is realistic about the outlook for 2012.

“It won’t be a blockbuster year. It will be challenging and that’s because governments have a lot of debt and it’s often harder for the economy to function when there is too much debt."

That view is not a political dog whistle, and with an election coming up he doesn’t want to pour cold water on the efforts of the government.

“The Bligh government deserves credit for the commitment it gave to the privatisation process, which was very successful. Just look at QRN."

Indeed, QR National has been another trophy in the cabinet for RBS. Crommelin says the fundamentals underpinning the coal transporter’s success are likely to continue despite the uneasy situation in the euro zone.

“I think the uncertainty of Europe will create a situation where everyone lives on tomorrow’s headline, and that is a situation I am cynical about because China is a long way from the bottom and that will contain any fallout from Europe."